Gross profits are maximised only when a firm's MC curve cuts MR curve from below. Explain
diagrammatically.
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Gross profits are maximized only when a firm's MC curve cuts MR curve from below as because when MC curve lies below the MR curve, in that situation MC< MR, so firm will continue its production till MC=MR in order to maximize its profit. Gross profit is the difference between total revenue and total variable cost.
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